Finance & Budget Committee Action I tem I I I -C April 12, 2018 Potomac Yard Station Project
Washington Metropolitan Area Transit Authority Board Action/Information Summary MEAD Number: Resolution: Action Information 201968 Yes No TITLE: Potomac Yard Station Budget Amendment PRESENTATION SUMMARY: Amend the budget for the Potomac Yard Station Project for design and construction. PURPOSE: Board approval is being sought to increase the budget for the Potomac Yard Station project, to authorize the GM/CEO to negotiate and execute funding agreement with City of Alexandria, and to amend the CIP. DESCRIPTION: Key Highlights: The Potomac Yard Station is a proposed in-fill station between National Airport and Braddock Road Stations on the Blue/Yellow Lines. Background and History: WMATA and the City of Alexandria (Alexandria) have been working in concert to advance the proposed in-fill station on the Blue/Yellow Lines between National Airport and Braddock Road Stations. Discussion: In October 2008 Alexandria requested that WMATA establish a reimbursable project for a new rail station between National and Braddock Road Stations. In February of 2009 the Board approved the establishment of a reimbursable project with an initial budget of $1.5 million. Subsequently the Board approved increasing the project budget to $11 million as the project advanced thru preliminary engineering, the preparation of an Environmental Impact Statement and the procurement of a design/build contract. Procurement is nearing completion and the selection of a contractor to prepare final design and to construct the station is at hand. This enables Alexandria and WMATA to finalize the project budget and the project agreement. Adding the final design and construction costs to the project requires an increase of the project budget to $290,000,000. Alexandria will fund all capital costs incurred until the project is closed out. WMATA’s six-year CIP and project budget must be amended to award contract for final design and construction and advance the project. The project schedule anticipates
that the new station will open to customers in mid-FY2022. The new Potomac Yard station will result in increased operating budget expenses and additional operating revenue for WMATA beginning in FY2022. Preliminary estimates indicate that additional annual operating expenses will be approximately $2-3 million and initial incremental operating revenue will range from $1-2 million, resulting in an annual operating subsidy increase of about $1-2 million. As the new station is a capital project approved by the Board of Directors, the incremental operating subsidy will be considered an addition to the base subsidy and above the three percent operating subsidy growth cap. Specific operating and maintenance strategies and cost estimates will be developed prior to the FY2022 budget. In addition, the new station will add to WMATA's infrastructure and equipment asset inventory. Long-term, these new assets will require rehabilitation and replacement through WMATA's CIP. FUNDING IMPACT: This action will increase the Potomac Yard project budget by $279 million, from $11 million to $290 million and increase the six-year CIP by the same amount. All costs associated with advancing the project will be funded by the City of Alexandria through a reimbursable project agreement. Project Manager: Fred Robertson Project Department/Office: COO/DECO TIMELINE: In December 2015 the Board approved: Public Hearing Staff Previous Actions Report, Preferred Alternative, Adding Station to Adopted Regional System, and acquisition of property. Anticipated actions after May 2018 - award the Design/Build Contract for the station presentation design and construction. RECOMMENDATION: Board approval to: 1) increase the Potomac Yard Station project budget by $279 million for design and construction, 2) authorize the GM/CEO to negotiate and execute funding agreement with City of Alexandria, and 3) amend the CIP.
Washington Metropolitan Area Transit Authority Amend Capital Improvement Program: Potomac Yard Station Project Finance and Budget Committee April 12, 2018
Purpose Obtain Board approval to: • Increase Potomac Yard Station project budget by $279 million for design and construction • Authorize GM/CEO to negotiate and execute funding agreement with City of Alexandria • Amend Capital Improvement Program 2
Background • October 2008 City of Alexandria asked WMATA to establish project for in-fill station between National and Braddock Road Stations • February 2009 Board approved project with initial budget of $1.5 million funded by Alexandria • Project budget increased to $11 million for preliminary design, Environmental Impact Statement and procurement process • In December 2015 the Board approved: • Public Hearing Staff Report • Preferred Alternative • Adding Station to Adopted Regional System • Acquisition of property 3
Project Status • $290 million total estimated project cost to be funded by City of Alexandria • Design/Build procurement nearly complete; value of contract not yet final • WMATA CIP and project budget must be amended to award contract for final design and construction • Contract duration approximately 3.5 years; station open to customers mid-FY2022 4
Recommendation Board approval to: • Increase Potomac Yard Station project budget by $279 million for design and construction • Authorize GM/CEO to negotiate and execute funding agreement with City of Alexandria • Amend Capital Improvement Program 5
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